Revenue Collection and Service Delivery in Kampala Capital City
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REVENUE COLLECTION AND SERVICE DELIVERY IN KAMPALA CAPITAL CITY AUTHORITY (KCCA) BY KASENDWA ROBERT INDEX NO: 2015 / FEB/MSC/M20383/WKD SUPERVISOR: MR. OWINO JOSHUA GEOPELLINI A DISSERTATION SUBMITTED TO SCHOOL OF BUSINESS ADMINISTARTION IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF THE DEGREE OF MASTERS OF SCIENCES IN ACCOUNTING AND FINANCE OF NKUMBA UNIVERSITY i OCTOBER 2018 DECLARATION I declare that this dissertation is my original work and has never been submitted to any other university / institution for any award. Signature………………………………………… Candidate’s name: KASENDWA ROBERT Date………………………………………………. ii APPROVAL This dissertation has been carried out under my supervision and is submitted for the award of a degree of Master of Science in Accounting and Finance with my approval as the candidates’ supervisor. Signature…………………………………… Mr. Owino Joshua Geopellini (Supervisor) Date………………………………………… iii DEDICATION This dissertation is dedicated to my parents and friends who tirelessly stood with me during my study. I also dedicate this dissertation to my wife and children who dearly missed me during the course of preparation of this piece of work. iv ACKNOWLEDGEMENT Firstly, I would like to thank and give glory to God for the inspiration and strength He granted me throughout this work in spite of all the difficulties encountered. I am so grateful to my supervisor Mr. Owino Joshua Geopellini for his overwhelming guidance and support through this work despite his busy schedules at the University. I am also grateful to my family members (parents, brothers, sisters and all others), friends and course mates for their maximum cooperation they showed me during the course of this research and my studies. I would like to thank the staff of KCCA and tax payers in Kampala for their time they spared to respond to my questionnaires and provide information to make the analysis possible. I thank all my lecturers and the entire management of Nkumba University for the support extended to me during the studies and research. May God bless you all! \ TABLE OF CONTENTS v DECLARATION ................................................................................................................. ii APPROVAL ....................................................................................................................... iii DEDICATION .................................................................................................................... iv ACKNOWLEDGEMENT ................................................................................................... v TABLE OF CONTENTS ..................................................................................................... v LIST OF FIGURES ............................................................................................................ ix LIST OF TABLES ............................................................................................................... x LIST OF ABBREVIATIONS ........................................................................................... xiii ABSTRACT ..................................................................................................................... xiv CHAPTER ONE:INTRODUCTION ............................................................................... 1 Background to the study ...................................................................................................... 1 Research Problem ................................................................................................................ 5 The Purpose of the Study ..................................................................................................... 6 The objectives of the Study ................................................................................................. 6 Research Questions .............................................................................................................. 6 Research Hypothesis ............................................................................................................ 7 Scope of the Study ............................................................................................................... 7 Significance of the study ...................................................................................................... 8 Setting of the Study.............................................................................................................. 9 Arrangement of the Study .................................................................................................. 10 CHAPTER TWO:STUDY LITERATURE ................................................................... 12 Introduction ........................................................................................................................ 12 Literature Survey ............................................................................................................... 12 Theoretical Review ............................................................................................................ 14 Efficiency and long-run growth ......................................................................................... 14 Literature review ................................................................................................................ 15 Nature of taxation .............................................................................................................. 20 Local Revenue Mobilization .............................................................................................. 20 Tax Base Coverage ............................................................................................................ 21 Registry of Property and Property Tax Information ......................................................... 22 Business Licenses .............................................................................................................. 23 License Register and the Tax Base .................................................................................... 24 Fee Structure ...................................................................................................................... 25 Property Taxation .............................................................................................................. 26 Establishing an Appraisal Model for Properties ................................................................ 27 vi Efficiency in Revenue Collections..................................................................................... 29 Collection and Enforcement .............................................................................................. 30 Service delivery in Local Governments ............................................................................. 32 The Purpose of Revenue in Local Service Delivery .......................................................... 34 Strategies for Improving Local Revenue Collection.......................................................... 36 Tax Assessment and service delivery ................................................................................ 38 Revenue Enhancement Plan and service delivery ............................................................. 39 Budgeted Versus Actual Collections ................................................................................. 40 Relationship Between Revenue Collection and Service Delivery ..................................... 42 Provision of budget support to enhance sustainable drainage and safe water in local governments ........................................................................................................................................... 43 Service delivery in Local Governments ............................................................................. 47 Conceptual Framework ...................................................................................................... 49 Conceptual framework ....................................................................................................... 50 CHAPTER THREE:RESEARCH METHODOLOGY ............................................... 52 Introduction ........................................................................................................................ 52 Research Design ................................................................. 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Study population ................................................................................................................ 53 Sample size ........................................................................................................................ 53 sampling techniques ........................................................................................................... 54 Data collection methods ..................................................................................................... 55 Background information of the respondents ...................................................................... 56 Age Bracket of the Respondents ........................................................................................ 57 Education level of the respondents .................................................................................... 58 Tennure .............................................................................................................................. 58 Data collection instruments ..............................................................................................